Development
Development
• The process of improving the material
conditions of people through the diffusion of
knowledge and technology
• More developed countries (MDCs)
– aka “developed” countries
• Less developed countries (LDCs)
– aka “emerging” or “developing”
– or “least developed” or “underdeveloped” countries
Wallerstein’s World Systems
Theory
Developed During the early 1900s
He characterizes the world system as a set of mechanisms
which redistributes resources from the periphery to the core.
In his terminology, the core is the developed, industrialized,
democratic part of the world, and the periphery is the
underdeveloped, raw materials-exporting, poor part of the
world; the market being the means by which the core
exploits the periphery.
More Developed Core Countries
(Original MDCs)
• The most economically diversified in jobs, wealthy, and powerful
(economically and militarily); and they are more educated / skilled
• Nowadays tend to specialize in information, finance and service
industries
• Originally known for producing manufactured goods rather than raw
materials for export (e1900s to m1900s)
• More often in the forefront of new technologies and new industries..
• Have more complex and stronger state institutions that help manage
economic affairs internally and externally
• Have a sufficient tax base so these state institutions can provide
infrastructure for a strong economy
• Have more means of influence over noncore nations
• Relatively independent of outside control
Periphery Countries
(Original LDC Countries)
• Least economically diversified and originally tended to depend
on one type of economic activity, such as extracting and
exporting raw materials
• Are often targets for investments from multinational (or
transnational) corporations from core nations that come into the
country to exploit cheap unskilled labor
• Tend to have more poverty and lower education levels.
• Inequality tends to be an issue
• Have relatively weaker government institutions with little tax
base to support infrastructure development
• Tend to be extensively influenced by core nations and their
multinational corporations.
Core-Periphery of the M1900s
SemiPeriphery
• Semiperiphery nations are those that
are midway between the core and
periphery. They tend to be countries
moving towards industrialization and a
more diversified economy. “While they
are weaker than core societies, they are
trying to overcome this weakness and
are not as subject to outside
manipulation as peripheral societies.”
Dependency Model
Wallerstein’s Views
• Throughout the history of the modern world-system
there has been a group of core nations competing
with one another for access to the world’s resources,
economic dominance, and hegemony over periphery
nation.
– There is no development of countries from periphery to
core or more developed. Static model.
– Trade and capitalism are negative influences.
– Examines the relationship between countries.
MDC LDC Today?
Indicators
Indicators of development
• Human Development Index (HDI)
– 4 factors used to measure (UN) and other factors
considered in differentiating between MDC/LDCs:
• Economic =
– (1) gross national income (GNI) per capita
– Other
» Types of jobs, productivity, consumer goods
• Social =
– (2) mean years of schooling and
– (3) expected years of schooling
– Other (health and welfare measures)
• Demographic
– (4) life expectancy
Video Examples of HDI
• Explanation
• Examples
North-South Split
MDCs clustered in the North
LDCs clustered in the South
What are Africa’s Issues
• Why does Africa have a harder time
developing?
– Geography
– Neighbors
Gross National Income (GNI)
• total value of goods and services produced
within a country during a year + foreign income –
payments to nonresidents.
– GNI per capita = Total GNI/population
•
•
•
•
allows comparison of different sized populations & economies
U.S. = $17 trillion/325 million people = GNI per capita = $52,000
China = $10 trillion/1.4 billion people = $7,200
Affected by inequality (see GINI coefficient) !!!!
– Much higher in MDCS (> $30,000)
– Lowest in some LDCs (< $4,000)
– Related to other measures like GDP and GNP
Per Capita GNI
Per Capita GDP (how does it differ)
Types of jobs (economic sectors)
• Primary sector – farmers mainly
– raw materials/extraction – anything you take out of the
ground or water (farming, fishing, mining)
• Secondary sector – factory jobs
– manufacturing, assembly and refining
• Tertiary sector – services
– Incl. sales, transportation and distribution, entertainment,
restaurants, clerical services, media, tourism, insurance,
banking, healthcare, and law.
Job Sectors over Time - America
Primary
• Decreasing in LDCs
– mechanization
• Stable but very low
in MDCs
– can’t go much lower
Secondary
• Has decreased
sharply in MDCs
– De-industrializtion
• Increasing in some
LDCs
– Lower wage areas (ex.
China) now dominate
manufacturing
– But not all LDCs are
increasing as rapidly in
second sector jobs
Tertiary
• Large % in MDCs
– Only sector likely to
grow in MDCs.
• Growing but much
smaller % in LDCs
Two Sometimes Additional Sectors
• Quaternary sector – intellectual, data
driven
– intellectual activities incl. govt., culture, libraries,
scientific research, education, and info tech.
• Quinary sector
– highest levels of decision-making in a society or
economy incl. the top executives or officials in
such fields as govt., science, universities,
nonprofit, healthcare, culture, and the media.
• Productivity
– Value of end-product compared to labor needed to make it
– MDCs are more productive than LDCs, Why?
• Mainly technology, but also skills and education
• Consumer goods
– especially considered are communication and transportation
• MDCs = Accessible to all, vital for functioning of economy
• LDCs = not unknown but don’t play a vital role, more available/used
in urban areas connected to the core.
Motor Vehicles Per 1,000 Persons
How to Measure to Development
• By standard of living / consumer goods:
Hans Rosling Video
Cell phones (good indicator?)
Smartphone or Computer with Internet
People Who Use the Internet
Computers per 1000
Iraq Example
Social indicators of development
• education and literacy
– education
• be careful how these stats are presented!
• student-teacher ratio
– higher in LDCs
– teacher/student ratio in MDCs is higher
• $/student
– higher in MDCS
– but % of GDP spent on education is higher in LDCs
Students Per Teacher, Primary School
Figure 9-6
Social indicators of development
• Health and welfare
– diet (adequate calories = 2,350)
– access to health care
– social safety net programs
Caloric intake as % of requirements
Health expenditures as % of GDP
Physicians per 1,000 persons
Demographic indicators of development
– Life expectancy
• Babies born today
– MDCs = 70s, LDCs = 60s
– Other demographic indicators:
• All higher in LDCs, but decreasing
– Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs
– Crude birth rate = 23/1,000 LDCs vs 12/1,000 MDCs
– Natural increase = 1.5% LDCs vs 0.2% MDCs
• Except CDR (Crude death rate)
– More equal due to diffusion of modern medicine
» MDCs slightly higher around 10 (more elderly)
» LDCs around 8
Population as an Indicator of
Development
Sta ge 1
Sta ge 2
Sta ge 3
B ir th r a te
N atu r al
i n c r e a se
D ea t h r a te
T im e
Sta ge 4
Life expectancy (2009)
Infant mortality rate
Natural Increase Rate
Crude Birth Rate
Progress Toward Development
How does Gender affect Development ?
• From 1995 – 2010
– Gender-Related Development Index (GDI)
• Compares women’s development with that of both sexes
• Criticized as too dependent on income
– Gender Empowerment Measure (GEM)
• Compares the involvement of women in decision-making roles in
politics and economics
• Current
– Gender Inequality Index (GII) based on three factors:
• Reproductive health
– Maternal Mortality Ratio (MMR)
– Adolescent Fertility Rate (AFR)
• Empowerment
– Share of parliamentary seats
• Labor market participation
Gender Inequality Index
Gender-Related Development Index (GDI)
Demographic Indicator of Gender
Difference: Life Expectancy
Gender Empowerment Measure (GEM)
Economic Indicator of Empowerment:
Professionals
Lower GII = higher development.
Why?
• It leads to smaller family sizes
– Women who have more educational and
economic opportunity have less children
– Lower dependency ratio
– More economic investment
• GNI is higher
– women are included in the formal economy
become major economic assets.
What Does Gender Population
Mean about a Country
All of these can be affected by
uneven development
• Differing HDI
values within
Brazil.
• Rural versus
urban
• Interior versus
coastal
• Affects: culture,
gender roles,
access
Where Do We Find Uneven Development?
Uneven Development
• Often worse in
countries that are
rapidly developing
• Urban areas
connected to
MDCs through
globalization
• Rural to Urban
migration
Gini Coefficient
A measure of statistical
dispersion intended to
represent the income
distribution of a nation's
residents, and is the
most commonly used
measure of inequality